Cautious investors are loading up on exchange-traded funds (ETFs) amid the ongoing market uncertainty. 2025 has been all about navigating choppy waters, and we’re only four months away from 2026. The best way to beat uncertainty is to invest in low-risk assets that have the potential to generate steady income. No, I’m not talking about dividend stocks.
Investing in stocks does carry a certain amount of market and industry risk. On the other hand, ETFs offer ultimate diversification, with low risk and low costs. This has made them the top investment product today. The ETF industry has gained tremendous momentum in 2025, and I think this trend could continue.
If you’re looking for a steady income, there are several ETFs worth considering. While the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG | VIG Price Prediction) is well-known, it is time to look for other options. A compelling alternative, Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) has a higher yield and pays monthly dividends.
The Fund
Launched in 2011, the Invesco S&P 500 High Dividend Low Volatility ETF is a top choice for income investors who prefer monthly dividends to cover expenses. The fund has a yield of 4.6% and an expense ratio of 0.30%. It tracks the S&P 500 index and holds 51 stocks.
With fewer stocks, each holding carries greater weightage, thus, increasing the potential to generate higher returns. The fund focuses on stocks that have the potential for a strong yield with lower volatility. It offers stability and an attractive yield by investing in real estate and utilities.
Its sector allocation is as follows:
- Real estate: 23.14%
- Consumer staples: 17.83%
- Utilities: 13.58%
- Financials: 11.62%
The Performance
VIG offers a dividend yield of 1.65%, while SPHD has a significantly higher yield of 4.63% . Additionally, SPHD holds 51 stocks as compared to VIG, which has 337. SPHD does not invest in technology, which sets it apart from VIG, which allocates 26% of the fund into tech stocks.
Invesco S&P 500 High Dividend Low Volatility ETF’s top 10 holdings include Altria Group Inc., Pfizer, Verizon Communications, United Parcel Service, and Kraft Heinz Co. No stock has a weightage higher than 4%. Each of these companies is a strong dividend payer with a record of increasing dividends. It also has some of the more common dividend payers such as PepsiCo, Johnson & Johnson, Merck, and Chevron.
The ETF limits 10 stocks for each sector, ensuring that it doesn’t incline towards a single industry, thus reducing volatility.
SPHD invests in the real estate sector, allowing you to own a part of the industry without a large financial commitment. Several ETFs are highly focused on the tech sector, and this is where SPHD sets itself apart.
The Strength
The ETF holds some of the most financially stable companies in the industry. Its holdings are based on a strong balance sheet and a history of consistent dividend payments. SPHD has a beta of 0.85, which shows lower volatility compared to the broader market. ETFs with a beta higher than 1 are more volatile than the broad market. For context, Microsoft, the tech giant, has a beta of 1.05.
With $3.1 billion in assets under management, SPHD ensures steady growth with low volatility. The fund has added about 1.80% so far this year and 0.12% in 12 months. Its NAV is $49.23, and the 52-week high and low are $51.88 and $43.40.
Top Gaining Stocks
Top Losing Stocks